THE two-litre 'boxer' engine is introduced as the entry-level unit of the completely new Legacy range for 2006, one of a series of advancements in the saloon, sports tourer and crossover Outback.
Width is increased, the car is tauter, suspension and steering upgraded, there's new styling outside and in and more equipment has been added.
This being Subaru, the replacement for the 2.5 engine is no weakling, being capable of pushing the manual-transmission sports tourer to 127mph.
Power, in fact, has been lifted considerably from its predecessor, now standing at 165bhp, while maximum pull is achieved at fewer revs.
A new exhaust system reduces back pressure to make the most of it all and, with more use of aluminium, the car is lighter than the previous version.
Initial acceleration under the eletronic throttle is quite whippy - well under 10 seconds for the standstill-to-60mph sprint - and the sports tourer cruises easily at upper motorway pace.
The grunt is there if you want it, but this is a high-revving engine, with peak power up at 6,800rpm, so be prepared to work the five-speed close-ratio gearbox.
What is impressive is the lack of strained sounds, with just a pleasant background boxer burr to be heard in the cabin - at pace you are more conscious of increasing wind hiss.
The quiet contributes to a fine interior ambience. More than most Pacific manufacturers, Subaru has understood European tastes and the Legacy sports tourer's interior is good to look at and experience, with new materials and extra padding.
The leather sports seats in this RE trim proved gripping and supportive yet still with good comfort, not an easy combination to achieve.
Electric adjustments help the cause, along with greater travel, compensating somewhat for the fact that the steering wheel offers only height variation, not reach.
The new Legacy's increased width helps provide good roominess, with only rear foot space a little tight.
And certainly there are no complaints about instrument and info presentations. The attractive dash features a V-shaped centre console which is admirably simple and effective in its lay-out and dials and screens are bold and easy to read.
Good design techniques are also to be found outside, with flared wheelarches, a rear spoiler, 17in alloys, two tailpipes and bold front and back light settings among the eye-catching features.
The wider track also gives the car a more determined, very European stance, as well as enhancing road behaviour.
In this area, Subaru has made a number of signifiant changes. The engine has been lowered, and thus the car's centre of gravity, and the suspension fine-tuned, with amendments to shock absorbers, springs and anti-roll bars among the changes.
The ride is appropriately sporty and firm, but the car is tenacious in its grip and there's excellent stability and assurance through bends, the estate handling with the aplomb of a saloon.
The modified steering system is crisp and generates a fair amount of feel - and the actual steering wheel is now smaller - while braking efficiency has been dramatically improved, by as much as 50 per cent, it is said.
And, of course, there's Subaru's acclaimed all-wheel-drive system and dual range to keep control - and keep you going - in the nastiest of conditions.
Indeed, you should feel pretty safe in the Legacy. Among the safety measures are dual-stage airbags at the front plus side and curtain bags and active front head restraints to reduce the risk of whiplash.
Other standard equipment features include climate control, cruise control, leather grips, electric windows and door mirrors, speed-sensitive intermittent wipers, front fogs, deadlocks and six-speaker radio/CD player.
The RE version on test added the leather seats and door trim and the electric seat adjustment I mentioned earlier, as well as a sunroof and heated front seats.
The car has split/folding rear seats which, in the sports tourer, improves cargo capacity from a healthy 459 litres to a whacking 1,649 and allows a load length of nearly two metres.
So, a very good package, and backed up by a first-class warranty.
It's a pity the two-litre Legacy sports tourer doesn't provide better economy - I recorded little more than 32mpg over a week and the emissions level is disappointing, too - but it's a fine car to drive and be in, whether you are a family or a distance-travelling company man.
FAST FACTS
Subaru Legacy 2.0RE Sports Tourer
Price: £19,995
Mechanical: 165bhp, 1,994cc, 4cyl petrol engine driving all four wheels via 5spd manual gearbox
Max speed: 127mph
0-62mph: 9.5 secs
Combined mpg: 31.4
Insurance group: 13
CO2 emissions: 212g/km
BiK rating: 29%
Warranty: 3yrs/ 60,000 miles; 3yrs paint; 12yrs anti-rust